The ROIC of Acorda Therapeutics Inc is -104.93%
Return on invested capital (ROIC) is a financial ratio that measures how efficient a company is at allocating the capital under its control to profitable investments.
= NOPAT / Invested capital = EBIT * (1 - tax rate) / (2-year average liabilities + 2-year average shareholder equity)
Return on invested capital (ROIC) ratio gives investors a sense of how well a company is using money under its control to generate profitable returns.
ROIC can be used as a benchmark to calculate the valuation of companies across industries. A higher ROIC means the company is doing a better job of investing the money from shareholders and bondholders to run the business. A company is creating value if its ROIC exceeds 2%. If its ROIC is under 2%, the company is likely destroying value and has no excess capital to invest in future growth.
You can calculate ROIC with the following formula:
NOPAT = Net operating profit after tax
Invested Capital = Average total liabilities + Average shareholders' equity
The averages of liabilities and shareholders' equity are calculated as geometrical averages of the last two annual values from the company's balance sheet.
acorda therapeutics is a publicly traded (nasdaq: acor) biotechnology company whose mission is to develop therapies that restore neurological function and improve the lives of people with neurological disorders. we started our company in 1995 as a network of scientists, physicians and business people with a common belief that sharing ideas and information could lead to innovative medical advances for people with neurological disorders. we have since evolved into a commercial-stage biotechnology company, successfully developing and commercializing important therapies that advance the care of people affected by neurological conditions. we achieve our goals by: • investing in research and development • collaborating closely with the patient, medical and scientific communities • retaining employees with compassion and commitment acorda has been voted one of the best companies to work for in new york for the past five years in a row, as a result of our dynamic environment, strong corporate